PlayStation has announced plans to lay off 900 employees, which is 8% of the company’s total staff. This is stated in the official announcement from Sony CEO Jim Ryan.

Jim Ryan also shared a letter that was sent to the company’s employees, which contains more details about the layoffs.

The London PlayStation studio is being completely shut down, the Firesprite studio will be downsized, and other Sony Interactive Entertainment employees in the UK and around the world will also be affected by the layoffs.

“After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company. We had to step back, look at our business holistically, and move forward focusing on the long-term sustainability of the company and delivering the best experiences possible for our community. The goal is to streamline our resources to ensure our continued success and ability to deliver experiences gamers and creators have come to expect from us,” Jim Ryan wrote.

In another statement, PlayStation Studios CEO Hermen Hulst also said that layoffs would also take place in the company’s main studios – Insomniac Games, Naughty Dogs, and Guerilla.

“PlayStation 5 is in its fourth year, and we are at a stage where we need to step back and look at what our business needs,” Hulst wrote.

He also said that the company reviewed the studios and their portfolios, evaluating games at different stages of development, and decided to close some of these projects. Hulst did not say which games he was talking about.